Dogecoin Price Rebounds On Wider Market Recovery, But Bearish Drag Persists

Summary:
• Bitcoin's stability above the $60k mark has towed the rest of the crypto market, but Dogecoin price faces uncertainty. We tell you why.

Dogecoin price returned to the upside on Tuesday, riding on the momentum provided by the broader market recovery. DOGE was at +1 percent as of this writing, after two days of losses that had seen it lose 6.7 percent of its value. That signals that the meme coin still has bearish undertones, but with Bitcoin setting the pace, the upbeat crypto market momentum will likely provide propulsion for DOGE.

DOGE price was at 0.1063 at press time, marginally above the 20-SMA on the daily chart. One of the greatest challenges facing Dogecoin is the emergence of alternative hype-driven meme coins minted on Solana’s Pump.fun and Tron’s SunPump platforms.

Notably, “new” meme coins like PEPE and Dogwifhat have generated traction that has taken some of the limelight from OG meme coins, Dogecoin and Shiba Inu. For example, PEPE price is up by +563 percent YTD while WIF has risen by +1,007 percent. On the other hand, DOGE gas gained +18.4 percent and Shiba Inu price is up by +42 percent YTD.

Momentum indicators

The momentum indicators on the 2-hour Dogecoin price chart tell us that the buyers have recently taken control of the market, but the upward traction is shaky. After spending a significant time on a downward trajectory below the middle Bollinger Band, DOGE price has changed its trajectory to the upside.

The price is on an upward recovery, having broken below the lower band earlier. However, it needs to go above the 20-SMA, corresponding to $0.1079 to establish support for the upward traction. Also, the RSI is 39, signifying a weak hold by the buyers.

Support and resistance levels

On the 30-minute chart, Dogecoin price looks likely to follow an upward trajectory if the price action stays above the 0.1056 pivot mark. With the buyers in control, the first resistance could come at 0.1063. However, extended control could result in a stronger propulsion to break past that mark and test 0.1072.

Conversely, the sellers could take control if the price moves below 0.1056. In that case, we could see the first support at 0.1047. However, extended bearish control at that point will enable a breach below that mark and potentially test 0.1040.